At $2.18, the national gas price average is at the cheapest start to the month of October since 2016. That average is the same as a week ago, four cents cheaper than the start of this past September and nearly 50 cents cheaper than last year. The national average held on the week as demand was mostly stable at 8.5 million b/d despite gasoline stocks increasing by 700,000 bbl.
“Demand is likely to see some declines in the weeks ahead as drivers traditionally take fewer road trips in the fall,” said Jeanette Casselano McGee, AAA spokesperson. “That will mean gas prices are likely to push cheaper throughout the month.”
On the week, 41 state gas price averages fluctuated by no more than two cents. Of those, 38 states only saw a penny increase or decrease. A handful of states saw more substantial gas price increases including Florida (+9 cents), Delaware (+6 cents), New Jersey (+6 cents), Washington, D.C. (+5 cents), West Virginia (+4 cents) and Maryland (+3 cents).
Quick Stats
The nation’s top 10 largest weekly changes: Florida (+9 cents), Delaware (+6 cents), New Jersey (+6 cents), Washington, D.C. (+5 cents), Michigan (-5 cents), West Virginia (+4 cents), Maryland (+3 cents), Kentucky (-3 cents), Idaho (-3 cents) and Indiana (-3 cents).
The nation’s top 10 least expensive markets: Mississippi ($1.84), Texas ($1.85), Arkansas ($1.87), Oklahoma ($1.87), Missouri ($1.87), Louisiana ($1.88), Alabama ($1.89), South Carolina ($1.91), Tennessee ($1.93) and Kansas ($1.95).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by $1.67 to settle at $37.05. Crude prices dropped dramatically due to market concern about increasing coronavirus infections worldwide, which could lower crude demand. The drop in prices occurred despite the Energy Information Administration’s weekly report revealing that total domestic crude inventories decreased by 2 million bbl to 492.4 million bbl. For this week, crude prices could decline further if demand concerns continue to worry the market.
